Capital One Financial Corporation · NYSE:COF
Capital One Financial — Q3 2019 Earnings Presentation
15 slides from Capital One Financial's earnings presentation, Oct 24, 2019
Slide 1: Third Quarter 2019 Results
Third Quarter 2019 Results October 24, 2019 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements Please note that the following materials containing information regarding Capital One’s financial performance speak only as of the particular date or dates indicated in these materials. Capital One does not undertake any obligation to update or revise any of the informatio
Slide 3: Company Highlights
Company Highlights • Net income for the third quarter of 2019 of $1.3 billion, or $2.69 per diluted common share ◦ Excluding adjusting items, net income per diluted common share for the third quarter of 2019 of $3.32(1) • Pre-provision earnings decreased 8% to $3.1 billion for the third quarter of 2
Slide 4: Net Interest Income and Net Interest Margin
Net Interest Income and Net Interest Margin Flat Q/Q $5,786 $5,820 $5,791 $5,746 $5,737 i1% Y/Y 7.01% 6.96% 6.86% 6.80% 6.73% 3Q18 4Q18 1Q19 2Q19 3Q19 Net Interest Income ($M) Net Interest Margin Third Quarter 2019 Highlights • The U.K. PPI Reserve build decreased net interest margin by 8 basis poin
Slide 5: Capital
Capital Ending Common Shares Outstanding (M) Common Equity Tier 1 Capital Ratio i1% Q/Q $2% Y/Y 473.7 469.6 470.3 467.7 465.7 12.5% 12.3% 11.9% 11.2% 11.2% 3Q18 4Q18 1Q19 2Q19 3Q19 3Q18 4Q18 1Q19 2Q19 3Q19 Third Quarter 2019 Highlights • Common equity Tier 1 capital ratio under Basel III Standardize
Slide 6: Credit Quality
Credit Quality Allowance for Loan and Lease Losses Provision for Credit Losses and Net Charge-Offs i1% Q/Q i3% Y/Y $1,693 $7,219 $7,220 $7,313 $7,133 $1,638$1,610 $1,599 $7,037 $1,508 $1,425 $1,462 $1,383 $1,342 $1,268 3.02% 2.94% 3.04% 2.92% 2.82% 2.67% 2.64% 2.41% 2.48% 2.38% 3Q18 4Q18 1Q19 2Q19 3
Slide 7: Financial Summary—Business Segment Results
Financial Summary—Business Segment Results Three Months Ended September 30, 2019 Consumer Commercial (Dollars in millions) Credit Card Banking Banking Other Total Net interest income $ 3,546 $ 1,682 $ 486 $ 23 $ 5,737 Non-interest income (loss) 870 165 221 (34) 1,222 Total net revenue (loss) 4,416 1
Slide 8: Credit Card
Credit Card 2019 Q3 vs. Third Quarter 2019 Highlights 2019 2019 2018 2019 2018 (Dollars in millions, except as noted) Q3 Q2 Q3 Q2 Q3 Earnings: • Ending loans up $3.0 billion, or 3%, year- over-year; average loans up $2.9 billion, or Net interest income $ 3,546 $ 3,531 $ 3,596 — (1)% 3%, year-over-ye
Slide 9: Domestic Card
Domestic Card 2019 Q3 vs. Third Quarter 2019 Highlights 2019 2019 2018 2019 2018 (Dollars in millions, except as noted) Q3 Q2 Q3 Q2 Q3 Earnings: • Ending loans up $3.1 billion, or 3%, year- over-year; average loans up $2.9 billion, or Net interest income $ 3,299 $ 3,220 $ 3,280 2% 1% 3%, year-over-y
Slide 10: Consumer Banking
Consumer Banking 2019 Q3 vs. Third Quarter 2019 Highlights 2019 2019 2018 2019 2018 (Dollars in millions, except as noted) Q3 Q2 Q3 Q2 Q3 Earnings: • Ending loans up $2.7 billion, or 5%, year- Net interest income $ 1,682 $ 1,709 $ 1,636 (2)% 3% over-year; average loans up $2.0 billion, or 3%, year-o
Slide 11: Commercial Banking
Commercial Banking 2019 Q3 vs. Third Quarter 2019 Highlights 2019 2019 2018 2019 2018 (Dollars in millions, except as noted) Q3 Q2 Q3 Q2 Q3 Earnings: • Ending loans up $4.9 billion, or 7%, year- Net interest income $ 486 $ 514 $ 513 (5)% (5)% over-year; average loans up $4.5 billion, or 7%, year-ove
Slide 12: Appendix
Appendix 12
Slide 13: Non-GAAP Measures
Non-GAAP Measures 2019 2019 2019 Nine Months Ended Q3 Q2 Q1 September 30, 2019 (Dollars in millions, except per share data and as Reported Adjusted Reported Adjusted Reported Adjusted Reported Adjusted noted) Results Adj.(1) Results Results Adj.(1) Results Results Adj.(1) Results Results Adj.(1) Res
Slide 14: Non-GAAP Measures
Non-GAAP Measures 2018 2018 2018 Nine Months Ended Q3 Q2 Q1 September 30, 2018 (Dollars in millions, except per share data and as Reported Adjusted Reported Adjusted Reported Adjusted Reported Adjusted noted) Results Adj.(1) Results Results Adj.(1) Results Results Adj.(1) Results Results Adj.(1) Res
Slide 15: Non-GAAP Measures
Non-GAAP Measures (1) Adjustments for the following periods consist of: 2019 2019 2019 Nine Months Ended 2018 2018 2018 Nine Months Ended (Dollars in millions) Q3 Q2 Q1 September 30, 2019 Q3 Q2 Q1 September 30, 2018 U.K. Payment Protection Insurance customer refund reserve build (“U.K. PPI Reserve”)
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